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2 Top Growth Stocks in Canada for December 2023

Growing plant shoots on coins
Image source: Getty Images

Written by Jitendra Parashar at The Motley Fool Canada

The Canadian stock market witnessed a handsome recovery in November, with the TSX Composite benchmark rallying 7.2%, posting its biggest monthly gains in nearly three years. This market recovery, especially in Canadian growth stocks, could be a great opportunity for long-term investors to consider buying some quality stocks still trading at a bargain.

In general, growth stocks are shares in companies that are expected to grow at an above-average rate compared to others in the market. These companies, especially from the tech sector, have the potential to multiply in value in a short period of time, which could deliver higher returns to investors. Especially now, with the market recovering, these growth stocks could save in value as the economy strengthens. For long-term investors, this means getting in early on companies that could become tomorrow’s market leaders.

In this article, I’ll highlight two of such top growth stocks in Canada you can buy in December 2023.

BlackBerry stock

BlackBerry (TSX:BB) is a Waterloo-based tech firm that primarily focuses on providing enterprise software solutions to organizations across the world under its cybersecurity segment and other advanced technological platforms to the automotive industry under its IoT (Internet of Things) segment. The company currently has a market cap of $2.9 billion, as its stock trades at $4.98 per share with nearly 13% year-to-date gains.

Interestingly, BlackBerry recently announced its intentions to separate its cybersecurity business unit from its IoT segment, as the company believes both of these segments can grow better as separate companies.

While it’s true that BlackBerry’s cybersecurity business has seen demand slowdown in recent quarters due to the ongoing macroeconomic challenges, the short-term obstacles might not affect its long-term growth outlook. As businesses across the world continue to grow their online presence, the demand for trustworthy cybersecurity solutions is likely to surge, which should help BlackBerry’s cybersecurity segment grow at an exponential rate in the years to come.

Similarly, as automakers continue to race to build autonomous vehicles, the demand for advanced automotive platforms, like BlackBerry’s intelligent vehicle data platform, IVY, is likely to surge. Considering that, I expect this top Canadian growth stock to witness a spectacular rally in the long term.

Nuvei stock

If you’re looking to invest your hard-earned money in some undervalued growth stocks for the long term, Nuvei (TSX:NVEI) could be a great choice in December 2023. This Montréal-based company provides integrated payment technology to businesses globally. It currently has a market cap of $3.9 billion as NVEI stock trades at $27.84 per share after declining by 19% year to date, making it look cheap based on its long-term growth potential.

Despite the poor performance of its stock of late, Nuvei’s revenue is continuing to grow at a fast pace. In the first three quarters of 2023, its sales jumped by 39.4% year over year to US$868.4 million. Although some one-time costs and currency headwinds affected its adjusted earnings during this period, consistently growing demand for reliable payment services and its expanding global presence brightens Nuvei’s long-term growth outlook.

The post 2 Top Growth Stocks in Canada for December 2023 appeared first on The Motley Fool Canada.

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See the 5 Stocks * Returns as of 11/14/23

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The Motley Fool has positions in and recommends Nuvei. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.